Korea Electric Power Corp. (ADR: KEP): Shares of Korea’s electric power company, often referred to as KEPCO, are currently trading at 11 times projected 2008 earnings, and feature a dividend yield of 2.4%. KEPCO’s steady growth should benefit from any acceleration in Korea’s economic growth rate, but it is forced to buy coal from overseas, which has doubled in price in the past year. Right now, that makes the stock a borderline “Hold/Buy.”

KT Corp. (ADR: KTC): Formerly operated as Korea Telecom, KT Corp. is now Korea’s leading fixed-line telecom-services provider, which was privatized in 2002. Although the shares carry a P/E on trailing earnings of less than 9, the stock’s forward P/E ratio is 13, as the company’s margins are under pressure in the very competitive Korean telecom market. Even with a dividend yield of 4.3%, it is probably only a “Hold.”

Posco (ADR: PKX): Posco is Korea’s largest steel company, and its shares are trading at a P/E of 12 on estimated 2008 earnings. It also features a dividend yield of 1.9%. Posco has a large export operation to China, making it a participant in China’s explosive growth. Although it’s the world’s third-largest steelmaker, it’s the most efficient in terms of output per man-hour. Like KEPCO, Posco suffers from the rising prices of raw materials; in its case iron ore business, for instance, it was recently socked with a 65% price increase. Even so, as we’ve previously reported to you, let’s not forget that when Berkshire Hathaway Inc. (BRK.A, BRK.B) Chairman Warren Buffett made his first investment foray into Korea last year, he took a 4% position in Posco - making it one of 20 Korean companies that he invested in. Posco is a well-run company that will become very attractive when the commodities bubble deflates, which may not be too long delayed. We rate it as a long-term “Buy.”

SK Telecom Co. Ltd. (ADR: SKM): SK is Korea’s largest mobile phone company, with operations in China and Vietnam. Its shares trade at 10.3 times estimated 2008 earnings, and it features a dividend yield of 4.8% - meaning that income investors also will do well from it. In China back in 2006, SKM invested in a $1 billion convertible of China’s #2 mobile company China Unicom Ltd. (ADR: CHU): The bonds were converted in August 2007 and the resulting 6.6% share stake in the fast-evolving China Unicom is currently worth almost $2 billion. In Vietnam, SKM’s 73%-owned Vietnamese subsidiary had 3.5 million subscribers in 2007, and that unit is aiming for 5 million in 2008. The only downside risk is in the U.S. market, where SKM’s U.S. operation shows a loss, and where SKM management seems to want to make some acquisition, throwing good money after bad. Because of that, we rate this stock as a borderline “Hold/Buy.”

Finally, you could look at the Korean exchange-traded index fund, the IShares MSCI South Korea Index Fund (EWY), an exchange-traded fund (ETF) that invests in the Morgan Stanley Capital International Korea Index. This ETF has a P/E of only 11, but a yield after expenses of only 0.6%.